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Cathay Cargo signs MoU to take full ownership of Air Hong Kong
July 14th 2017
Cathay Pacific Airways last Friday announced it intended to acquire DHL’s 40% holding in the cargo carrier, Air Hong Kong (AHK). Read More » The purchase, when completed, would shift the cargo unit from a joint venture to a full subsidiary of Cathay. AHK’s website said DHL Express is its main customer.
The stock exchange filing said AHK would continue to operate a freighter network to destinations in Asia for DHL and receive service fees and operating expense reimbursements in return.
Cathay Pacific’s chief customer and commercial officer, Paul Loo, said the group was pleased to announce the signing of a Memorandum of Understanding and is looking forward to continuing its “fruitful commercial relationship with DHL”.
Cathay and DHL confirmed they had a non-binding agreement that would see AHK and DHL enter into a sale and leaseback transaction for eight A300-600 freighter aircraft and associated equipment. The transaction has a value of approximately HK$36 million (US$4.7 million).
Air Hong Kong serves Bangkok, Penang, Taipei, Narita, Osaka, Nagoya, Seoul, Singapore, Shanghai, Beijing and Manila.
